Oman-UAE special economic zone work has officially started on the Al-Rawdah project, a $2 billion initiative designed to boost trade and investment between Oman and the UAE. This new special economic zone aims to create a business-friendly environment with tax exemptions and other benefits to attract investors.
Strategic Location and Connectivity
The Al-Rawdah zone is located in the Mahdah area of Oman’s Al Buraimi Governorate, right on the border with the UAE. This location offers easy access to two major ports: Sohar Port in Oman and Jebel Ali Port in the UAE. This connectivity will help businesses within the zone efficiently manage logistics and expand their reach regionally and internationally.
Business Incentives and Tax Exemptions
Investors in the Al-Rawdah zone will benefit from a 15-year tax exemption on corporate income. This generous incentive is designed to attract both local and foreign companies to establish operations there. The zone allows 100% foreign ownership and offers exemptions from customs duties on imports, exports, and goods in storage. These measures are set to reduce costs and encourage more businesses to invest.
Focused Economic Development
The project targets several key sectors, including manufacturing, logistics, pharmaceuticals, plastics, mining, food processing, and security services. By focusing on these industries, the zone aims to diversify the regional economy and create employment opportunities for local communities. The zone will also provide a one-stop shop for licensing and permits, simplifying business setup and operations.
Long-Term Vision and Regional Impact
Al-Rawdah is part of a larger vision to enhance economic collaboration between Oman and the UAE. The zone is expected to increase trade volumes and support the growth of small and medium-sized enterprises. By fostering innovation and technology transfer, the project will contribute to sustainable economic growth in both countries.
The Oman-UAE special economic zone at Al-Rawdah is a significant development that will drive trade, investment, and job creation. Its strategic location, investor incentives, and focused industry sectors position it as a key player in regional economic integration and development.
